Economic Policies and Impacts GK MCQs With Answer & Explanation in English

1. Who initiated the process of decentralization of finances in India?

  1. Lord Rippon
  2. Lord Mayo
  3. Lord Curzon
  4. Lord Minto

Show Answer

Answer: Lord Mayo

Lord Mayo, the 4th Viceroy of India, served from January 12, 1869, to February 8, 1872. He initiated a process of financial decentralization during his tenure. This effort aimed to grant more fiscal authority to provincial governments and reduce the central government’s control over finances. His financial resolution of 1870 marked the first significant step toward bifurcating central and provincial finances.

2. For which commodities were the Indian peasants forced to grow, making the British wealthier during the British rule in India?

  1. Indigo
  2. Opium
  3. Cotton
  4. All of them

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Answer: All of them

During British rule in India, British authorities exerted economic control over the country. They compelled Indian peasants to cultivate crops such as indigo, opium, and cotton to serve British economic interests. This practice was a form of exploitative agrarian economy, where Indian farmers were forced to produce cash crops for export, rather than for their subsistence.

3. Through his work “Poverty and Un-British Rule in India,” Dadabhai Naoroji highlighted which reasons for India’s poverty?
1) Expenditure of European Officials in England
2) Money sent by British professionals to England
3) India’s Population growth
4) Inflow of British Capital in India.
Select the correct option from the codes given below:

  1. Only 1, 2 & 3
  2. Only 2, 3 & 4
  3. Only 1, 2 & 4
  4. 1, 2, 3 & 4

Show Answer

Answer: 1, 2, 3 & 4

In his work, Dadabhai Naoroji highlighted four reasons for India’s poverty:
1) Expenditure of European Officials in England,
2) Money sent by British professionals to England,
3) India’s Population growth, and
4) Inflow of British Capital in India.

4. Who launched the “No Rent Campaign” in the last leg of the 19th century?

  1. Mahatma Gandhi
  2. Bal Gangadhar Tilak
  3. Sri Aurobindo
  4. Lala Lajpat Rai

Show Answer

Answer: Bal Gangadhar Tilak

Bal Gangadhar Tilak, a prominent freedom fighter and leader, led the “No Rent Campaign” in 1896. This campaign involved the non-payment of taxes as a form of direct defiance against British administrative authority. It was initiated during the 1896 famine, aiming to protest against the British policies that exacerbated the suffering of the Indian population.

5. In what way was the Indian cotton industry inferior to that of England during the British rule in India?

  1. Indian textile industry had an ever-increasing and large domestic market.
  2. There was plenty of raw material available.
  3. The industry was not managed by highly skilled technicians and managers
  4. India was the traditional home for cotton textiles.

Show Answer

Answer: Brij

India’s cotton industry during British rule faced limitations compared to England’s more advanced cotton industry. India lacked industrialization, highly skilled technicians, and efficient management, making it less competitive and advanced in comparison to the British cotton industry.

6. Which among the following about Lord Mayo’s resolution of 1870 is correct?

  1. It was the first step that bifurcated central and provincial finances.
  2. Provincial Governments were empowered to administer certain services.
  3. It attempted to rectify existing imparity.
  4. It focused on the actual needs of the provinces

Show Answer

Answer: It was the first step that bifurcated central and provincial finances.

Lord Mayo’s resolution of 1870 was the first step that bifurcated central and provincial finances and empowered provincial governments to administer certain services.

7. Who of the following was also addressed as Sajjan?

  1. Lord Rippon
  2. Lord Attenborough
  3. Lord Evans
  4. Lord William I

Show Answer

Answer: Lord Rippon

Lord Ripon, as Viceroy of India, introduced numerous measures to ameliorate the condition of native Indians. He was popularly known as “Ripon, the Good” or “Sajjan Ripon.” His significant contributions included pioneering local self-government in modern India, a step toward empowering local communities and decentralizing authority.

8. Among the following matches of Lord Cromer’s revenue division and their corresponding beneficiaries, which is/are correct?

  1. Imperial – Central Government
  2. Provincial – Provinces
  3. Divided – Equal distribution between Imperial and Provincial government
    Choose the correct code
  1. Only 1 and 3
  2. Only 2 and 3
  3. Only 3
  4. 1, 2 & 3

Show Answer

Answer: 1, 2 & 3

Lord Cromer’s revenue division classified government finances into three categories: Imperial, Provincial, and Divided. The Imperial category corresponded to the Central Government’s financial responsibilities, the Provincial category represented financial responsibilities of the Provinces, and the Divided category entailed equal distribution of financial resources between the Imperial and Provincial governments.

9. Which of the following about the Royal Commission on Decentralization is correct?

  1. It was set up in 1907 by the British Government.
  2. Its main objective was to investigate the financial and administrative relations of Central and provincial government.
  3. The only Indian member of this commission was R.C. Dutt.
  4. The report of this commission was published in 1909.
    Choose the right code
  1. 1, 2, and 3
  2. 2, 3, and 4
  3. 1, 3 and 4
  4. 1, 2, 3, and 4

Show Answer

Answer: 1, 2, 3, and 4

The Royal Commission on Decentralization was established in 1907 by the British Government to investigate the financial and administrative relations between the Central and provincial governments in India. The commission’s primary goal was to assess the financial autonomy and governance structures. R.C. Dutt was the only Indian member of this commission, and the commission’s findings were published in 1909.

10. Which of the following objectives was the Provincial Relations Committee under Lord Meston appointed for?

  1. To recommend necessary steps to restore the deficit of the central government.
  2. To recommend necessary steps to enhance the revenue of the provinces.
  3. To recommend necessary steps to settle the problem of tax evasion.
  4. None of the above

Show Answer

Answer: To recommend necessary steps to restore the deficit of the central government.

The Provincial Relations Committee, led by Lord Meston, was appointed to recommend steps for resolving the central government’s deficit. This committee focused on finding ways to address the financial challenges faced by the central government in India.

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